diff --git a/src/core/ext/transport/chttp2/transport/chttp2_transport.cc b/src/core/ext/transport/chttp2/transport/chttp2_transport.cc
index ab69cecf3a3..dc4e0024051 100644
--- a/src/core/ext/transport/chttp2/transport/chttp2_transport.cc
+++ b/src/core/ext/transport/chttp2/transport/chttp2_transport.cc
@@ -669,6 +669,7 @@ static int init_stream(grpc_transport* gt, grpc_stream* gs,
   GRPC_CLOSURE_INIT(&s->complete_fetch_locked, complete_fetch_locked, s,
                     grpc_schedule_on_exec_ctx);
   grpc_slice_buffer_init(&s->unprocessed_incoming_frames_buffer);
+  s->unprocessed_incoming_frames_buffer_cached_length = 0;
   grpc_slice_buffer_init(&s->frame_storage);
   grpc_slice_buffer_init(&s->compressed_data_buffer);
   grpc_slice_buffer_init(&s->decompressed_data_buffer);
@@ -1577,20 +1578,27 @@ static void perform_stream_op_locked(void* stream_op,
 
   if (op->recv_message) {
     GRPC_STATS_INC_HTTP2_OP_RECV_MESSAGE();
-    size_t already_received;
+    size_t before = 0;
     GPR_ASSERT(s->recv_message_ready == nullptr);
     GPR_ASSERT(!s->pending_byte_stream);
     s->recv_message_ready = op_payload->recv_message.recv_message_ready;
     s->recv_message = op_payload->recv_message.recv_message;
     if (s->id != 0) {
       if (!s->read_closed) {
-        already_received = s->frame_storage.length;
+        before = s->frame_storage.length +
+                 s->unprocessed_incoming_frames_buffer.length;
+      }
+    }
+    grpc_chttp2_maybe_complete_recv_message(t, s);
+    if (s->id != 0) {
+      if (!s->read_closed && s->frame_storage.length == 0) {
+        size_t after = s->frame_storage.length +
+                       s->unprocessed_incoming_frames_buffer_cached_length;
         s->flow_control->IncomingByteStreamUpdate(GRPC_HEADER_SIZE_IN_BYTES,
-                                                  already_received);
+                                                  before - after);
         grpc_chttp2_act_on_flowctl_action(s->flow_control->MakeAction(), t, s);
       }
     }
-    grpc_chttp2_maybe_complete_recv_message(t, s);
   }
 
   if (op->recv_trailing_metadata) {
@@ -1867,6 +1875,10 @@ void grpc_chttp2_maybe_complete_recv_message(grpc_chttp2_transport* t,
         }
       }
     }
+    // save the length of the buffer before handing control back to application
+    // threads. Needed to support correct flow control bookkeeping
+    s->unprocessed_incoming_frames_buffer_cached_length =
+        s->unprocessed_incoming_frames_buffer.length;
     if (error == GRPC_ERROR_NONE && *s->recv_message != nullptr) {
       null_then_run_closure(&s->recv_message_ready, GRPC_ERROR_NONE);
     } else if (s->published_metadata[1] != GRPC_METADATA_NOT_PUBLISHED) {
diff --git a/src/core/ext/transport/chttp2/transport/internal.h b/src/core/ext/transport/chttp2/transport/internal.h
index 6d11e5aa314..a9b34a6e74b 100644
--- a/src/core/ext/transport/chttp2/transport/internal.h
+++ b/src/core/ext/transport/chttp2/transport/internal.h
@@ -550,6 +550,11 @@ struct grpc_chttp2_stream {
   grpc_slice_buffer unprocessed_incoming_frames_buffer;
   grpc_closure* on_next;    /* protected by t combiner */
   bool pending_byte_stream; /* protected by t combiner */
+  // cached length of buffer to be used by the transport thread in cases where
+  // stream->pending_byte_stream == true. The value is saved before
+  // application threads are allowed to modify
+  // unprocessed_incoming_frames_buffer
+  int32_t unprocessed_incoming_frames_buffer_cached_length;
   grpc_closure reset_byte_stream;
   grpc_error* byte_stream_error; /* protected by t combiner */
   bool received_last_frame;      /* protected by t combiner */